Wednesday 15 March 2017

Proposed changes to PPS lease definition

On 1 March 2017 the Federal Government introduced the Personal Property Securities Amendment (PPS Leases) Bill 2017 into parliament, which, if passed, will amend section 13 of the Personal Property Securities Act 2009 (Cth) (PPSA) to:
  • replace the current one year threshold for deeming a commercial lease or bailment to be a PPS lease to two years, and
  • remove the much criticised ‘indefinite term’ category of PPS lease, unless the lessee or bailee has held the goods for longer than two years with the lessor or bailor’s consent.